SADCOPAC – MALAWI TRAINING AG INDEPENDENCE AND AUDIT DISCRETION EFFECTIVE PUBLIC ACCOUNTS COMMITTEE 19 DECEMBER 2012 BY JEFF KAUARIA

Independence of SAI and Audit Discretion The issue of independence is quite different from other SAIs requirements in that it is determined by factors external to the SAI, such as the legal framework established for the SAIs work

Independence of the SAI and Audit Discretion SAIs are established by Parliaments/National Assembly, though they initiate their own audits they should be protected from political interference. The Independence of the Auditor-General is very vital if the report produced by the SAI is to be objective and credible. Most SAIs independence is vested in the constitution and the enabling acts.

Independence of the SAI and Audit Discretion Adequate degree of independence from both the legislature and the executive authorities is very key. Ultimately, audit tasks rest with the SAI and there is no restriction on content or timing of reports.

Strategic Imperatives of AFROSAI-E 1. Independence 2. IT infrastructure, IT auditing and electronic working papers 3. Human resource management 4. Quality assurance 5. Performance auditing 6. Communication and relationships

ICBF DOMAINS-(AFROSAE-E) 1. Independence and legal framework 2. Organization and management 3. Human resources 4. Audit methodology and standards 5. Communication

ISSAI 1, Lima Declaration Section 17 of the Lima Declaration The reports of the SAI:... shall present the facts and their assessment in an objective, clear manner and [are] limited to essentials. The wording of the reports shall be precise and easy to understand. The SAI shall give due consideration to the points of view of the audited organizations on its findings.

ISSAI 10,Mexico Declaration SAI should have freedom to: Report the results of their regularity or performance audit work and Report to parliament at least once a year. Determine the content and timing of reports Decide on audit topics / special investigations Publish or disseminate reports Submit reports to parliament or to a PAC for follow- up.

Standards of INTOSAI INTOSAI (International Organization of Supreme Audit Institutions) I nternational S tandards of S upreme A udit I nstitutions

The ISSAI hierarchy

Key Independence Characteristics 1. The existence of an appropriate and effective constitutional/statutory/legal framework and of de facto application provisions of this framework. 2. The independence of SAI heads and members (of collegial institutions), including security of tenure and legal immunity in the normal discharge of their duties.

Key Independence Characteristics 3. A sufficiently broad mandate and full discretion in the discharge of SAI functions. 4. Unrestricted access to information. 5. The right and obligation to report on the SAIs work. 6. The freedom to decide the content and timing of audit reports and to publish and disseminate them.

Key Independence Characteristics 7. The existence of effective follow-up mechanisms on SAI recommendations. 8. Financial and managerial/ administrative autonomy and the availability of appropriate human, material, and monetary resources

I THANK YOU!!